Correlation Between Medalist Diversified and Kennedy Wilson
Can any of the company-specific risk be diversified away by investing in both Medalist Diversified and Kennedy Wilson at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Medalist Diversified and Kennedy Wilson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medalist Diversified Reit and Kennedy Wilson Holdings, you can compare the effects of market volatilities on Medalist Diversified and Kennedy Wilson and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Medalist Diversified with a short position of Kennedy Wilson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medalist Diversified and Kennedy Wilson.
Diversification Opportunities for Medalist Diversified and Kennedy Wilson
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Medalist and Kennedy is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Medalist Diversified Reit and Kennedy Wilson Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kennedy Wilson Holdings and Medalist Diversified is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Medalist Diversified Reit are associated (or correlated) with Kennedy Wilson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kennedy Wilson Holdings has no effect on the direction of Medalist Diversified i.e., Medalist Diversified and Kennedy Wilson go up and down completely randomly.
Pair Corralation between Medalist Diversified and Kennedy Wilson
Given the investment horizon of 90 days Medalist Diversified is expected to generate 1.17 times less return on investment than Kennedy Wilson. But when comparing it to its historical volatility, Medalist Diversified Reit is 2.51 times less risky than Kennedy Wilson. It trades about 0.15 of its potential returns per unit of risk. Kennedy Wilson Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,113 in Kennedy Wilson Holdings on August 29, 2024 and sell it today you would earn a total of 35.00 from holding Kennedy Wilson Holdings or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medalist Diversified Reit vs. Kennedy Wilson Holdings
Performance |
| Timeline |
| Medalist Diversified Reit |
| Kennedy Wilson Holdings |
Medalist Diversified and Kennedy Wilson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medalist Diversified and Kennedy Wilson
The main advantage of trading using opposite Medalist Diversified and Kennedy Wilson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medalist Diversified position performs unexpectedly, Kennedy Wilson can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kennedy Wilson will offset losses from the drop in Kennedy Wilson's long position.| Medalist Diversified vs. Modiv Inc | Medalist Diversified vs. Presidio Property Trust | Medalist Diversified vs. Gladstone Commercial | Medalist Diversified vs. Generationome Properties |
| Kennedy Wilson vs. Investcorp Credit Management | Kennedy Wilson vs. Medalist Diversified Reit | Kennedy Wilson vs. Aquagold International | Kennedy Wilson vs. Morningstar Unconstrained Allocation |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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